
MasterClass addresses financial service providers’ top concerns

Market uncertainty and compliance obligations are two major challenges that financial service providers (FSPs) face, said Masthead Regional Manager in Johannesburg Ryno Volschenk. He was addressing independent financial advisors (IFAs) at a Masthead MasterClass held at Auto and General Park, Midrand, on 27 September 2023.
While the current economic outlook is somewhat rosier than before, the market is still very volatile and consumers’ budgets are stretched. This has had a profound impact on FSPs, especially in the realm of new business where there has been a noticeable decline, Volschenk said. “We’ve noticed that for some FSPs, just maintaining their existing book is considered a win rather than signing new business,” he said.
This is compounded by the ever-changing regulatory environment, which is a major concern for FSPs and especially IFAs. “Many of them struggle to navigate and implement new legislation. And with COFI and Omni-CBR on the horizon, the industry faces even more uncertainty,” Volschenk said.
Compliance obligations
To assist advisors in addressing these challenges, he said the Johannesburg Masthead team has been aiding FSPs in the area with their compliance obligations, while preparing them for upcoming legislative shifts.
“We’re also helping FSPs future-proof their businesses through the implementation of robust practice management principles. These principles not only enhance compliance and sustainability but add value to the businesses,” Volschenk added. “We are also focusing on training FSP staff, from Key Individuals to Representatives and admin personnel.”
In light of the challenges, the topics addressed at the Masthead MasterClass centred on how FSPs can use regulation, as well as practice management, to build resilient businesses that can withstand legislative changes and economic challenges. “The aim was to empower FSPs with the insights and strategies they need to transform their practices into valuable assets, despite the various challenges that currently lie in their path.”
Speakers
Themed ‘Rising to the Challenge: Harnessing the Power of Regulation to Drive Innovation and Growth’, the MasterClass commenced with Volschenk’s welcome. Masthead MD Joleen John then spoke on ‘Looking Beyond the Noise’, which offered FSPs advice on staying current in the changing economic and legislative landscape.
Next at the podium was Anri Dippenaar, Masthead’s Head of Compliance. Her presentation, ‘FAIS/FICA Audits: Risks You Need to be Aware Of’, delved into the evolving regulatory landscape, covering FAIS, NCR, POPI, CMS and COFI. In addition, she shed light on new business opportunities for FSPs and provided insights into what they should consider when incorporating cryptocurrency into their services.
Christopher Malan, Executive Manager of the Compliance and Prevention Division at the Financial Intelligence Centre (FIC), provided a comprehensive update on where South Africa stands following the country’s greylisting by the Financial Action Task Force (FATF) in February this year.
After a tea break, Momentum Asset Management Economist Sanisha Packirisamy presented a talk titled ‘Global and Local Macro Outlook – Too Early to Celebrate’. The talk gave a greater understanding of the current local and global economy and market trends.
Senior Specialist in the FICA Supervision Department at the Financial Sector Conduct Authority (FSCA) Michele Fourie presented on ‘Ten Practical Steps to Expect from an FSCA FIC Inspection, and What to Expect if Things Go Wrong’. This presentation gave attendees a better understanding of audit expectations and the repercussions of non-compliance.
To conclude the event, Jeanine de Swardt-Breeds, Gauteng Area Manager and Senior Practice Management Consultant at Masthead, offered practical strategies for IFAs to purposely design, shape and invest in their financial planning practices. Her discussion, ‘Making Money from Your Business (Valuations and Succession)’, explored how IFAs can transform their businesses into valuable assets, and how this relates to succession planning and the upcoming Omni-CBR reporting requirements.
More than a MasterClass
“The MasterClass went beyond simply providing FSPs with the knowledge they need to thrive in today’s regulatory and economic environment. It was an opportunity for IFAs to connect and engage with peers from across the industry, from fellow advisors and product providers to the regulators and Masthead,” Volschenk said.
“At its core, Masthead seeks to cultivate a strong sense of community within the industry, and this event embodied that spirit.”